For a year now markets have been on a wild ride.The financial astute are waking up the reality that something is wrong. The system is fracturing.This started as problems relegated to the peripheral. Venezuela, Brazil, Greece. Now, the cracks are creeping inwards towards the core. Puerto Rico, America. Massive Layoffs. Businesses are beginning to Default.

There has been a paradigm shift. Reserve Balances with Federal Reserve Banks which have only expanded more & more to sensational extremes are losing air. The beginning of a downtrend after a parabolic ascent...

The QE Experiment Summed up in a chart. All this credit expansion & economically nothing to show for it...

The masses are clueless of the devastation that is to come to financial markets. Many continue to happily 'buy the dip' playing counter-trend roulette . However, the savvy few are aware & have been positioning themselves increasingly out of risky assets such as equities & into more traditional safe-havens such as Treasury Bonds, Dollar, Yen, & Gold.We can see the deflation ravaging oil. No bottom in sight!I like to consider the commodities markets bastions of 'free-markets.' These markets are real: Controlled solely by the forces of supply/demand & are less susceptible to manipulation than other pure-play financial instrument markets. Perhaps this is why equities continue to levitate as if by magic. For now, the PPT is somehow still managing to prevent serious downside follow-through on any breakdown attempt.

The Performance of Various Markets Since Equities Topped Out

We continue to see Bulls fight with blind faith towards extreme Central Banker Policies. ​However, fighting nature has it's limitations & eventually I expect the Deflationary Business Cycle to assert itself with unfathomable force...